Over the years, Gordon Atlantic has developed a proprietary approach to economic development projects. Gordon Atlantic self-created projects, and Concierge Economic Development private client projects that incorporate outside investors must be able to demonstrate that the total cost of development divides into the first or second year projected valuation at an 11% cap rate based on reasonable data at least one time. The only exception to these requirements, are long-term leaseback healthcare projects. Gordon Atlantic currently consolidates margins derived from the sale of registeredsecurities or petrochemical transactions into its consolidated investment fund (CIF) – which is the primary vehicle for self-created project investment that meet the meet the minimum valuation requirements stated above.
Having discovered worthwhile economic developments that do create jobs unable to meet Gordon Atlantic’s strict outside investor valuation criteria, the firm set about to establish a new type of economic development fund (EDF). When complete, the new EDF will allow projects to be pursued that allow for a valuation realization over a 10-year period. Each year, the CIF will invest 20% of projected after tax income into the EDFs, after an annual CIF threshold has been met. Gordon Atlantic CIF and EDFs are private, firm-owned and controlled resources that do not allow and will not allow outside investor or public participation at any stage. The EDF is still a work in progress. A separate EDF for global film production will also be established. Gordon Atlantic will take 25% of realized margins from the EDF as profit and overhead with a commitment to invest 75% in economic developmentprojects or continue EDF growth.
Gordon Atlantic has simplified royalties as follows: for current petrochemical or future EDF margins derived within the United States, a 50% royalty will be applied by Gordon Atlantic Development Corporation. A 25% royalty will be applied for petrochemical or future EDF margins derived outside the United States. A 25% royalty will be applied to Gordon Atlantic Alle Deutschland, GmbH, Gordon Atlantic Development Hong Kong, Limited, or Gordon Atlantic Development UK, Limited, for current petrochemical or future EDF margins that are derived within Germany, Hong Kong, or the United Kingdom respectively. Petrochemical margins produced through credit facilities or future EDF margins derived or supported by Republic of India-owned or based banks, despite their global location, are subject to at least a 25% Gordon Atlantic All India, Limited royalty.